weekendcharting 28 november, page-77

  1. 14,914 Posts.
    No worries Fuzu, glad it was of some help. Also worth noting for future reference is the reason why that saucer and handle pattern was a particularly good buy entry is becuase the intraday trading ranges significantly shortened meaning the volatility slowed down imensly from the start of the pattern, right through until the explosive breakout.

    You want a cup and handle or saucer pattern to be nice and tight, with small trading ranges and a drop in volume on the base to almost nothing. This indicates the selling has virtually stopped. Price tends to explode out of tight trading ranges like somthing that has been coiled up and wants to spring to life. The best example of this is in typical flag retraces.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.